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UAE Free Zone Economic
Stimulus Packages
On 28 March 2020, the Dubai Free Zones Council and several free zones
across the United Arab Emirates announced financial and other support
measures (the “Measures”) to mitigate the adverse impact of the COVID-
19 pandemic on registered entities operating in such free zones. We
have set out below a brief summary of the Measures adopted by some of
the more commonly used free zones. Please note that the Measures
listed are limited to fee reductions/waivers and extended timeframes for
making mandatory filings, and are current as of 9 April 2020.
For more information,
contact:
Jawad I. Ali
Partner
[email protected]
James Stull
Partner
[email protected]
Macky O'Sullivan
Senior Associate
mosullivan@kslaw.com
Dora Chan
Senior Associate
dchan@kslaw.com
King & Spalding
Dubai
Al Fattan Currency House
Tower 2, Level 24
DIFC | Dubai International
Financial Centre
P.O. Box 506547
Dubai, UAE
Tel: +971 4 377 9900
Abu Dhabi
Level 15, Al Sila Tower
Abu Dhabi Global Market
Square
PO Box 130522
Abu Dhabi
United Arab Emirates
Tel: +971 2 652 3400
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Abu Dhabi Global
Market (ADGM)
Dubai International
Financial Centre (DIFC)
Dubai Multi
Commodities Centre
(DMCC)
Jebel Ali Free Zone
Registration and
Renewal Fees
• Waiver of commercial
licence renewal fees
(excluding SPV and
foundation licences) until
25 March 2021.
• Waiver of business activity
renewal fees until 25
March 2021.
• Waiver of data protection
renewal fees until 25
March 2021.
• Waiver of annual Funds
fees until 31 December
2020.
• 100% refund of annual
Funds fees already paid
by Financial Services
Regulatory Authority
(“FSRA”) regulated
entities for 2020.
• 50% refund of supervision
fees already paid by
FSRA regulated entities
for 2020.
• 50% reduction of any new
FSRA supervision fees to
• A waiver of annual
licensing fees payable to
the registrar of companies
on new registrations until
30 June 2020.
• A 10% discount on
renewal fees payable to
the registrar of companies
for all DIFC registered
entities that are due for
renewal until 30 June
2020.
• 50% reduction in DFSA
application fees for the
remainder of 2020 and
flexibility in requirements
for permanent premises.
• For domestic funds, a
waiver of DFSA
registration fees for the
remainder of 2020.
• Additional time, where
reasonable, for submitting
annual accounts and
financial statement
auditors report, with the
exception of Reporting
Entities.
• Waiver of late licence
renewal penalties until
30 June 2020.
• Waiver of the company
reinstatement fees until
30 June 2020.
• 30% discount on licence
renewal until 30 June
2020.
• 80% reduction on the
total company set-up fee
if shareholders are
residents of JLT.
• Up to 50% reduction on
the total company set-up
fee along with a flexi
desk for one year.
• Flexible payment
options for new DMCC
Business Centre tenants
and a complete digital
process for business
set-up from the comfort
of their home.
• Reduction of trading
license fees for new
incorporations as
follows:
— Trading type 1
license (reduction
from AED 5500 AED
5000).
— Trading type 2
license (reduction
from AED 9000 to
AED 5000).
— General trading
license (reduction
from AED 30,000 to
AED 15,000).
• Waiver of registration
fees for:
— Free zone
establishment (FZE)
(originally AED
10,000).
— Free zone company
(FZCO) (originally
AED 15,000).
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be collected until 31
December 2020.
• An extension of time for
filing a number of other
returns and reports.
• Flexibility in meeting
Authorised Individual
obligations, including
extending the amount of
time that temporary cover
can be in place.
• A waiver of fees for
applications relating to
Authorised Individuals
and flexibility in
considering the workload
that may be carried by
those offering outsourced
compliance services.
• Temporary relief from
Capital Requirements for
those firms which do not
hold or control Client
Assets or hold Insurance
Monies.
• A waiver of application
fees for rule waivers and
modifications for the
remainder of 2020 and a
waiver of all automated
late return fees for the
remainder of 2020.
• A waiver of the listing
fees for new SME issuers
— Branch (originally
AED 5000).
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in the DIFC for the
remainder of 2020.
Rents and Other
Property Related
Fees
• Deferment of rental
payments and service
charges for office tenants
at ADGM Square on Al
Maryah Island for 2020.
• Deferring three months of
commercial property rent
into a six-month payment
plan, in respect of
properties owned by
DIFC Investments Ltd.
• Applying a reduction on
property transfer fees
from 5% to 4% for any
property sale (or any part
thereof) during the three-
month period.
• Waiver for all flexi desk
and DMCC Business
Centre penalties until
the end of 2020.
• Waiver of the office
sharing permit fee.
• Waiver of outdoor area
rents for JLT retailers
with existing contracts
where DMCC is the
building owner/landlord.
• Waiver of rent for two
months for commercial
establishments impacted
by the latest Dubai
Economy directive
requiring a temporary
closure where DMCC is
the building
owner/landlord.
• Three-month
suspension of rent for
flexi desk and DMCC
Business Centre tenants
renewals or
monthly/quarterly
instalments with no
discount.
• Reduction of lease rates
on a case-by-
Employment,
Visas, Online
Services and
• Waiver of new temporary
work permits issuance,
renewal and late
• Facilitating the free
movement of labour in
and out of the DIFC to
• Signature on the new
incorporation forms such
as board resolution and
• Soft copies of KYC
documents without
notarization or
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Miscellaneous
Initiatives
application fees until 25
March 2021.
other free zones after an
application is submitted to
DIFC Government
Services by transferring
the visa or issuing a
seconded access card,
provided that the relevant
employers have the
necessary arrangements
and contracts in place
with their employees.
specimen signature can
be done through video
conference or in
presence of an
approved DMCC
international service
provider. Documents of
the parent company can
be forwarded by email
as scanned copies of
the original notarized
documents or an online
verification can be done
through the public
register.
now until embassies are
open in the relevant
home country.
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